4 Factors to Consider in Determining Dividend Yields

Dividends4Life submits: If income investing were as simple as picking the stock with the highest yield, everyone would be an expert. Most assume (rightfully so) that yield is heavily influenced by risk, but much more goes into determining yield. Below are several important factors that influence a stock’s yield, along with some illustrative examples:Industry Have you ever noticed that stocks within an industry often have similar yields? This makes sense when you consider they often have like operations with processes, cost structures and margins. This is evident when you look at retailers who buy similar products, resell them in a physical location and have fairly low margins due to the intense competition. Note the yield similarity of Target Corp. (TGT) with a 1.3% yield and Costco (COST) with a 1.5% yield. Even WalMart (WMT) with their economies of scale and focus on efficiency has a yield only slightly higher at 2.4%. The same analysis could be done with The Coca-Cola Company (KO) with a 3.4% yield and Pepsico, Inc. (PEP) with a 3.1% yield.Complete Story »

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By Dividendinvestr:PepsiCo (PEP) and Coca-Cola (KO) are both countercyclical stocks that operate in a relatively mature and stable consumer staples industry. Both stocks are also constituents of the S&P 500 Dividend Aristocrats index, raising their dividends for at least 25 consecutive years.

By Muhammad Bazil:Coca Cola (KO) is unarguably a stock with a solid track record of juicy dividend payments. Coca Cola has paid solid dividends regularly for the past decades and it is an established brand known worldwide.

By Insider Monkey:
Nelson Peltz, the manager of activist hedge fund Trian Fund Management announced November 14 that it purchased 2.36 million shares of PepsiCo (PEP), in a position worth roughly $146 million. PEP recently traded at $64.50 a share, down from a 52-week high of $71.89. Analysts estimate the stock will reach $71.08 in the next year.

ByHere To Learn:Shares in Dr Pepper Snapple Group (NYSE:DPS) have gone up by 22.0% year to date and are now trading near their 52-week high. At the current price per share of $59.45, shares in Dr Pepper are now yielding 2.76%. Does the current price level offer opportunities for long term dividend investors, or would it be wiser to wait for a pullback before getting in?

By Rash Menaria: American International Group, Inc. (AIG) is one of the biggest international insurance organizations, serving customers in more than 130 countries. I discussed AIG's Top Buys in a previous article. In addition, for investors seeking yield it is also interesting to have a look at AIG's top dividend holdings.

Dividends4Life submits: There are income investors and Dividend Growth investors. While the distinction is rather simple, it slips past many casual observers. Income investors are investing for maximum current income, while dividend growth investors are looking to maximize income over an extended period of time — usually sacrificing current income for potential greater future earnings.